# Bastion Trading Group Borrowing Request

**URL:** <https://forum.truefi.io/t/bastion-trading-group-borrowing-request/296>\
**Category:** Borrower Requests\
**Created:** [February 11, 2021, 6:01am UTC](https://forum.truefi.io/t/bastion-trading-group-borrowing-request/296 "2021-02-11T06:01:25Z")\
**Posts on this page:** 1\
**Showing post:** 12

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**Author:** ![BastionTradingGroup](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.truefi.io/bastiontradinggroup/32/485_2.png) [@BastionTradingGroup](https://forum.truefi.io/u/BastionTradingGroup)\
**Post date:** [February 17, 2021, 7:52am UTC](https://forum.truefi.io/t/bastion-trading-group-borrowing-request/296/12 "2021-02-17T07:52:18Z")

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While, we are waiting on a whitelist process/approval to be completed, I will post here just for record some update on our thoughts on the interest rate at this point. The summary is unless there is a significant market change - we will need to apply with a higher rate than proposed (probably a “duh” statement). Personally, I have always been fascinated with the process of price discovery. We are juggling number internally.

Some data points:

AAVE rates:

 ![aaverates](https://us1.discourse-cdn.com/flex016/uploads/truefi/original/1X/2bddc52b696a581bf0224a74e91795ebaa8f24c5.png)

The average of the current rates across the stable coins, USDT, USDC, TUSD, and BUSD is around 13.5% on the margin (in time). Longer term for the two largest stablecoins USDT and USDC is 10.75% over 30 days. Similarly, Y Curve has exhibited similar rates, where the current rate is 16% vs. longer rates I would guess is around 10-12% before CRV rewards. Other protocols are offering even higher yields.

So, the “overnight rate” we then estimate 14.75% - and longer term is 10.5% at least looking back 30 days. By depositing in these, likely, a lender still takes hold of collateral. So how much is uncollateralized lending worth? Materially more.

Lets consider the reference simply to be the average of the two rates 14.75% and 10.5% which by no means in scientific - but this is 12.625%.

What is the traditional finance ratio for secured and unsecured finance?  
LQD (Unsecured Mostly Corporate Debt) Dividend Yield: 2.67%  
MBB (Agency Mortgage Backed - Collateralized and Gteed) Dividend Yield: 2.05%  
HYG (High Yield Corproate Debt): 4.80%

Clearly, there should be a premium to unsecured loans.

Here are some data points above to consider - but really leave the stakers to decide of course.

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